[UPDATED] Transactions & Financings: New Senior Pays Off $125 Million Of Debt

Share

New Senior Investment Group (NYSE: SNR) paid off $125 million of mortgage debt with a combination of cash on hand and the proceeds from a new revolving credit facility secured by eight private pay senior housing facilities. This transaction lowers New Senior’s leverage and interest expense.

Borrowings under the credit facility bear interest at LIBOR plus 2.5%. The credit facility matures in December 2021 with a one-year extension option, while a majority of the debt repaid was scheduled to mature in 2019 and 2020, and may be increased from $125 million to $300 million, subject to customary terms and conditions. The credit facility was arranged by KeyBanc Capital Markets. KeyBank National Association is serving as the administrative agent.

Denver-based Grand Peaks Properties acquired Joseph’s Village Senior Apartments, a 252-unit affordable senior living community in Hollywood, Florida. The purchase price was $21.4 million. The seller was a limited liability corporation affiliated with realtor Scott Daiagi. The property last traded for $3.2 million in 2013, when it was seized in foreclosure.

Popular Reports

Carefree Living Acquires Minnesota Assisted Living and Memory Care Community

Minnesota-based Carefree Living, a division of Spectrum Health Companies, announced the acquisition of the Hoyt Lakes Northland Village senior living community in Hoyt Lakes, Minnesota. The facility will offer both assisted and newly remodeled independent living units. The Hoyt Lakes acquisition is one of three finalized this month. Carefree Living also purchased the Northland Village senior living communities in Buhl and McGregor, Minnesota.

San Diego-based PMB Real Estate Services and Seattle-based GenCare Lifestyle acquired Madrona Park Senior Living, a 93-unit senior living facility in Federal Way, Washington, for $16.62 million. The seller was CP Federal Way, a limited liability affiliate of Columbia Pacific Advisors. Harrison Street Real Estate Capital provided 90% of the equity for the acquisition. GenCare will serve as operating partner. The joint venture will spend $4 million on renovations and adding another 18 units. Madrona Park was 81% occupied at the time of purchase.

HJ Sims Arranges $33 Million In Financing

HJ Sims arranged an $18 million financing package for Phoebe Ministries, a multi-facility organization specializing in healthcare, housing, and support services for older adults. Located in seven Pennsylvania counties, Phoebe serves approximately 15,000 seniors annually. The financing was arranged through Citizens Bank.

Phoebe engaged Sims to assist with financing options related to its new Rodale campus, and additional capital needs at its Phoebe Berks community (Berks). Financing needs totaled $12 million for land acquisition, $4.5 million for capital improvements at Berks, and $1.5 million for funded interest and financing costs. The debt was structured as interim financing, to be repaid with permanent financing, anticipated within 12-24 months.

HJ Sims also arranged a $15 million for Broadview Senior Living at Purchase College, a life plan community under development in Purchase, New York. Sims secured the required financing commitment with an experienced institutional investment fund.

Blueprint Facilitates Sale of Kansas Retirement Community

Blueprint Healthcare Real Estate Advisors’ Ben Firestone and Michael Segal were the lead advisers in the sale of Ottawa Retirement Village, a continuing care retirement community (CCRC) in Ottawa, Kansas. Blueprint represented the seller, a faith-based, nonprofit organization headquartered in the Midwest, in the deal.

*Editor’s Note: An earlier version of this story cited a media report that included inaccurate information about this transaction, including the number of units involved. This article has been corrected to reflect information provided to Senior Housing News by GenCare.

Always inquisitive and often curmudgeonly, Chuck can often be found on a bike unlocking Chicago's secrets, telling stories, making cocktails, checking out live music, tearing through his podcast and Filmstruck queues and playing with his pitbull, Mira.

Latest Research

The world is smart. Smart watches. Smart phones. Smart homes. Smart consumers. As the smart tech revolution grows, senior living operators are increasingly incorporating this technology on a device-by-device basis to improve specific aspects of the care and living experience.

With increased customer demand and shifting business imperatives, intergenerational senior living is on the rise. Our report goes inside this growing opportunity, examining bold executions defined by six exciting trends.